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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
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The pullback signals a shift in sentiment as investors booked profits following a sustained rally in gold prices.
According to Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India, “The dip can be attributed to profit-booking by investors following a sustained rally in gold prices. Additionally, some investors opted to rebalance their portfolios by reducing exposure to gold, leading to temporary outflows from the category.”
In February, gold ETFs had seen strong inflows amid rising geopolitical tensions and inflationary concerns, which kept demand for safe-haven assets high. However, with gold prices hovering near record highs in March, some investors chose to lock in gains.
Portfolio rebalancing ahead of the new financial year also contributed to the outflows.
Despite this blip, gold ETFs remain resilient in the broader scheme. The overall investment trend in FY25 has been positive, with investors relying on gold to hedge against macroeconomic risks and market volatility.
Meshram noted that “the overall trend for FY25 underscores gold’s enduring appeal as a hedge,” suggesting that while monthly flows may fluctuate, the long-term outlook for gold remains constructive.
As global economic and geopolitical uncertainties continue to shape investor behavior, analysts expect gold ETFs to retain their relevance in diversified portfolios, even if near-term trends reflect tactical exits.
First Published: Apr 11, 2025 4:03 PM IST